Electricity transmission

Consultation on Associated Documents to the proposed NESO licences – regulatory framework documents

National Energy System Operator (NESO) licences and other impacted licences: statutory consultation
Decision on the Electricity System Operator Reporting and Incentives Arrangements: Guidance Document for 2023-2025
Decision on Amendments to BP2 ESO Roles Guidance
Decision on the funding of the transition to a Future System Operator
Consultation on the policy direction for the Future System Operator’s regulatory framework

We are consulting on proposals for three Associated Documents (ADs) that would be established under National Energy System Operator’s (NESO) proposed new licences:

the Independent System Operator and Planner (ISOP) Roles Guidance
the Independent System Operator and Planner Reporting and Incentives (ISOPRI) Arrangements Governance Document
the FSO Transition Funding Governance Document

We plan to introduce changes to NESO’s regulatory framework in phases. Under this phased approach, we are consulting on critical changes for ‘Day 1’ of NESO as soon as the organisation goes live. We plan to consult on broader changes to implement a more enduring regulatory approach at appropriate later points (including prior to the 31 March 2025, when the current ESO business plan period ends, and prior to the 31 March 2026, when the RIIO-2 price control ends).

We welcome views from stakeholders on these documents and our proposed changes by 5 July 2024.